I 3x-ed my coding class price. This happened.

these numbers are not exact, it’s just from memory

In 1 day, around 20 students signed up for my intro to coding classes. In the first batch, we had 60 students.

Amazing right?

Nope.

It wasn’t making a lot of profits. Lemme prove to you:

Revenue
→ 60 students × $180
= $10,800

Dinner cost per lesson per student → $10

Number of lessons per student → 6

Dinner cost per student → $60

Total dinner cost
→ 60 students × $60
= $3,600

Profit
→ Revenue − Total dinner cost
= $10,800 − $3,600
= $7,200

Second batch, we 3x-ed the price from $180 to $600.

Instead of 60 students, we had around 15 students.

Sounds worse right? But look at the numbers.

Revenue
→ 15 students × $600
= $9,000

Total dinner cost
→ 15 students × $60
= $900

Profit
→ Revenue − Total dinner cost
= $9,000 − $900
= $8,100

Revenue is around the same.

Cost: before → after
$3,600 (−75%) → $900

Profits: before → after
$7,200 (+12.5%) → $8,100

I literally taught 75% fewer students and made more money.

This lesson has made me open my eyes to just charging more.

Make more profits + less customers = less stress and happier life.